Question to the Department for Education:

To ask the Secretary of State for Education, what steps his Department is taking to support the financial recovery of colleges after the covid-19 outbreak.

I am very grateful for how colleges are responding to the unique challenge of COVID-19. We recognise the financial impact this is having on the FE sector and are working to make changes where we can.

We have confirmed that the Education and Skills Funding Agency (ESFA) will continue to pay grant funded providers their scheduled monthly profiled payments for the remainder of the 2019/20 funding year. Allocations for 2020/21 have also now been confirmed and payments will be made as scheduled. Up to date details are contained in operational guidance available at:

https://www.gov.uk/government/publications/coronavirus-covid-19-maintaining-further-education-provision.

In addition, training providers, including colleges, were able to apply to the ESFA Provider Relief Scheme for support if they have contracts for services that were procured as a service under the Public Contract Regulations 2015. The purpose of the Relief Scheme is to ensure training providers can continue to deliver high quality education and training to make sure we have the skills needed to rebuild our economy post COVID-19. This also includes supporting new learners where possible to get the skills they need to progress. Details are available at: https://www.gov.uk/government/publications/esfa-post-16-provider-relief-scheme.

On 20 May 2020, we also launched a provider relief scheme for European Social Fund contractors. Details are available at: https://www.gov.uk/government/publications/esfa-esf-provider-relief-scheme.

For colleges in significant financial difficulties the existing support arrangements remain in place, including short-term emergency funding.

The Chancellor of the Exchequer has also announced a series of wider measures to support employers and employees, recognising the significant impacts caused by COVID-19. We have confirmed that FE providers can apply to the Coronavirus Job Retention Scheme (CJRS) for non grant-funded employees. The CJRS has been extended until August 2020. Up to date details of this support are available at: https://www.gov.uk/government/publications/guidance-to-employers-and-businesses-about-covid-19/covid-19-support-for-businesses.

As announced last summer, we will next year be increasing investment in education and training of 16-19 year olds by £400 million, including an increased base rate, and more funding for high cost and high value subjects, which should help the sector to deliver in the difficult circumstances we are facing. In March, we also announced an investment of £1.5 billion over five years in capital spending for further education colleges.

These are rapidly developing circumstances and we will continue to keep the situation under review and to keep Parliament updated accordingly.